The Delhi Drugs Control Department has warned pharmacies and medical stores against advertising steep discounts of up to 60, 70 or 80 per cent on medicines if such offers are unrealistic, exaggerated or misleading.
In an advisory to chemist associations across the national capital, the department said it had observed some retail pharmacies displaying promotional boards, banners and advertisements carrying claims such as "UP TO 60%/70%/80% DISCOUNT".
The department, however, made it clear that selling medicines below the Maximum Retail Price (MRP) is permitted. Its objection is to vague or exaggerated advertisements that could mislead customers about the discount actually available.
The advisory asks all licensed pharmacies and medical stores in Delhi to refrain from displaying or publicising "unrealistic, exaggerated, false, misleading or vague" claims regarding discounts or prices of medicines, including claims used to promote the sale of prescription medicines.
Discounts Allowed, But Claims Must Be Genuine
Any discount offered must be genuine, transparent and actually available to the customer, the Drugs Control Department said.
Pharmacies should also be able to verify the discount through their sale bills and purchase records.
The department has further said that medicines must be procured from genuine licensed drug distributors and wholesalers.
It also flagged unusually steep discounts as a potential concern. According to the advisory, exaggerated claims involving pharmaceutical products being offered even below their purchase price from manufacturers or authorised distributors could raise questions over the genuineness and source of procurement.
"Medicines are not ordinary consumer goods. They are essential healthcare products directly connected with the health and well-being of patients," the department said.
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Their procurement, sale and distribution, it added, require a higher degree of responsibility, transparency and ethical conduct.
The advisory effectively draws a distinction between offering a discount and advertising one in a manner that could mislead customers. Pharmacies can sell medicines below MRP, but the discount promoted to consumers must be genuine and verifiable.
Kerala High Court Ruling Behind Delhi Move
The Delhi advisory cites a June 19, 2026 Kerala High Court judgment that upheld regulatory action against misleading or vague pharmacy discount boards while recognising that there is no prohibition on the genuine sale of medicines below MRP.
The case arose from a September 4, 2024 circular issued by the Kerala Drugs Controller. Three petitions were heard together, two challenging the circular and one seeking its implementation.
Pharmacy operators challenging the circular argued that there was no legal prohibition on selling medicines below MRP or informing customers about discounts offered by them.
The Kerala Drugs Controller, however, told the court that the department was not against discounts, which could make medicines more affordable. Its concern was with misleading advertisement boards, including those projecting discounts of up to 80 per cent.
Authorities told the court that customers could be attracted by such large advertised discounts but eventually receive a much smaller reduction or even end up paying the MRP.
The High Court held that while medicines cannot be sold above the maximum retail price, there is no restriction on reducing their selling price.
It said the regulatory action was aimed at preventing misleading display boards and advertisements relating to discounts and did not stop retailers from offering medicines at reduced prices.
The court also upheld the licensing authority's power to impose conditions to ensure pharmacies conduct their business without misleading the public.
During the proceedings, the undertaking required from licensees was rephrased to state that they would not display discount boards containing "misleading or vague claims regarding the price of drugs".
The High Court dismissed the two petitions challenging the regulatory action and allowed the petition seeking implementation of the circular.
Chemist Associations Asked To Alert Members
The Delhi Drugs Control Department has asked all chemist associations in the capital to sensitise their members and bring the advisory to their notice.
All retail pharmacies and medical stores operating in Delhi have also been advised to comply with the directions in the interest of transparency, consumer protection and prevention of misleading commercial practices in the sale of medicines.
